The marginal product of the 6 t h farm worker and the marginal product of the 8 t h worker, if the price rises to $3 a bunch.

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Answer 1

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

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Students have asked these similar questions

Suppose Fred produces 500 litres of milk every day with 10 workers. The price of milk is $12 per litre, and each worker is paid $550 daily. If the marginal product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred increase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.

A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a cookie is $1.00. Is the firm maximizing profit? The firm A. is not maximizing profit because the marginal revenue product of labor is greater than the wage. B. is not maximizing profit because the marginal revenue product of labor is less than the wage. C. is maximizing profit because the marginal product of labor is greater than the wage. D. is not maximizing profit because the price of the output is not equal to the wage. E. is not maximizing profit because the marginal product of labor is greater than the wage.

suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.

Answer 2

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

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Answer 3

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 6

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 7

Chapter 19, Problem 1SPPA

To determine

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the labour market, an equilibrium occurs when wage rate equals value of marginal product. If the farm employs six workers, and the wage rate is $12 per hour, then the value of the marginal product of the sixth farm worker must be $12 per hour. If asparagus costs $2, then the marginal product of labour (which is the value of marginal product divided by the price) is 6 units.

If the price of asparagus rises, the farm hires two more workers, it still must be that the value of marginal product of the eighth farm worker is equal to the wage rate. So, the value of the marginal product of the eighth farm worker is $12 per hour. If asparagus costs $3, then the marginal product of labour (which is the value of marginal product divided by the price) is 4 units.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Marginal product:

Marginal product is addition to total product when one more unit of labour is employed. Generally, the marginal product is positive.

Answer 12

Ch. 19 - Prob. 1SPPA Ch. 19 - Prob. 2SPPA Ch. 19 - Prob. 3SPPA Ch. 19 - Prob. 4SPPA Ch. 19 - Prob. 5SPPA Ch. 19 - Prob. 6SPPA Ch. 19 - Prob. 7SPPA Ch. 19 - Prob. 8SPPA Ch. 19 - Prob. 9SPPA Ch. 19 - Prob. 10SPPA

The marginal product of the 6 t h farm worker and the marginal product of the 8 t h worker, if the price rises to $3 a bunch.

To compute: The marginal product of the 6th farm worker and the marginal product of the 8th worker, if the price rises to $3 a bunch.

Explanation of Solution

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Chapter 19 Solutions

To compute:

The marginal product of the 6^t^h farm worker and the marginal product of the 8^t^h worker, if the price rises to $3 a bunch.